[10897] in Commercialization & Privatization of the Internet

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Re: The FCC strikes the Internet (fwd)

daemon@ATHENA.MIT.EDU (Karl Denninger)
Mon Mar 14 01:40:01 1994

From: karl@mcs.com (Karl Denninger)
To: fidelman@civicnet.org (Miles R Fidelman)
Date: Sun, 13 Mar 1994 20:08:25 -0600 (CST)
Cc: karl@mcs.com, com-priv@psi.com
In-Reply-To: <Pine.3.89.9403132021.A13815-0100000@world.std.com> from "Miles R Fidelman" at Mar 13, 94 09:02:00 pm

> Based on the last thread of messages, I think I'd better clarify something:
> 
> Neither I, nor The Center for Civic Networking, have ever espoused a 
> position in favor of mandated, flat-rate email service.  I/we agree with 
> those who point out that cheap email is already a reality.

Good.

> Rather, we have espoused a goal of universal, cheap, flat-rate IP service.

A goal, perhaps, yes.  As something to be regulated in, I say "no", and
loudly.  The problem with regulation is that there is a definition problem
for "cheap", and there is a definition problem for "fair".

> Regarding specific policies: 
> 
> We strongly believe that low-cost, flat-rate, local loop service is the 
> key bottleneck to low-cost IP service for residences and small 
> organizations.  We also believe that regulatory action, probably at the 
> PUC level, is needed.  If PUC authority is pre-empted in these issues, 
> then the focus shifts to the joint Federal-State boards envisioned in 
> HR3636 and S1822.

Start with addressing at the PUC and national levels the idiocy of T1 and
other high-speed channel pricing in the LECs.  24 analog telephone lines 
cost roughly $350 monthly around Chicagoland.  That's a T1 worth of capacity
from a telco perspective.  That same thing delivered on a T1 is close to 
$1,000 a month!  For <$3,000> a month I can buy that same line from here to
San Francisco!

> We have, at times, floated the notion that local exchange carriers should 
> be required to provide IP services -- but in light of some of the points 
> raised in discussions on this and other lists, we've backed away from 
> this notion, believing instead that unbundled local loop serices will 
> lead to third party provision of IP services; and that letting regulation 
> get too close to the Internet per se is a bad idea.

Good.

> Miles Fidelman

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